“The inhabitants in Florentin continues to be younger, primarily because of the small residences of which there are a comparatively giant quantity within the neighborhood,” explains realtor Moshe Gabbay, who has been working in Florentin for years. “This ensures that costs might be a little bit simpler to pay. As well as, the neighborhood continues to develop continually and supply engaging issues to younger folks. The municipality’s determination to shut a few of the streets to pedestrians additionally had its impact and is holding them right here.”
“But when the development of rising costs continues, it should maintain younger folks away from the neighborhood,” he provides. “They’ll head additional south, to neighborhoods like Kiryat Shalom or the Shapira neighborhood. Some are already doing this.”
The rise in costs can already be felt on the bottom: Some declare that costs within the neighborhood have already reached the extent of costs within the extra prosperous northern neighborhoods of Tel Aviv.
A 110% rise in costs
Florentine extends over 353 dunams (88.25 acres) in southern Tel Aviv, between Derech Jaffa and Eilat Streets to the north, Derech Shlomo (Salma) to the south, Aliyah Road to the east and Elifelet Road to the west, and homes about 10,000 residents. The density within the neighborhood is without doubt one of the highest within the nation: 15 housing items per 1,000 sq. meters.
In line with knowledge from the Madlan web site, because the starting of 2025, 35 residences within the neighborhood have been offered, new and second-hand, in contrast with 80 in all of 2024. This contains 25 new residences, at a mean worth of about NIS 72,000 per sq. meter, a worth degree much like rather more luxurious neighborhoods within the metropolis. Twelve second-hand offers have been accomplished in Florentin because the starting of the yr, at a mean worth of NIS 52,000 per sq. meter. Madlan’s knowledge additionally reveals that between 2014 and 2023, house costs within the neighborhood elevated by nearly 110%, though in 2024, costs within the neighborhood truly decreased barely.
In line with Madlan, 23 of the 37 residences offered within the neighborhood because the starting of the yr (about 62%) are two-room residences, and one other ten are three-room residences. No four-room residences have been offered within the neighborhood because the starting of the yr.
“There’s not a lot provide of four-room residences within the neighborhood, so there’s a combat over every one,” says Gabbay. “Solely households, who’re more and more occupying extra space within the neighborhood, or a number of companions who transfer in collectively, can afford such residences immediately. If three years in the past, rental offers for four-room residences that I brokered commanded a mean lease of NIS 8,500 shekels per 30 days, immediately it’s NIS 13,000 or 14,000 per 30 days. Even in smaller residences, costs have skyrocketed. A one-room house that was rented three years in the past for NIS 3,100 per 30 days, is now rented for NIS 5,000 per 30 days; a two-room house that was rented for NIS 4,200 per 30 days, is now rented for NIS 6,500 per 30 days; a three-room house that was rented three years in the past for NIS 6,500 per 30 days, is now rented for NIS 8,500.”
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Madlan CEO Tal Kopel says, “While you have a look at the combination of residences offered in Florentin, you see that there’s a deliberate effort to maintain the character of the neighborhood intact. There is no such thing as a different neighborhood in Tel Aviv the place the availability of small residences is so broad and dominant. The truth that the residences within the neighborhood are principally small residences additionally impacts the common worth per sq. meter within the neighborhood, as a result of the smaller the house, the worth per sq. meter tends to be increased.”
New initiatives: Crossed the NIS 70,000 per sq. meter mark
New actual property initiatives have been arising all through Florentin recently, and a few house costs have already crossed the NIS 70,000 per sq. meter mark.
Within the Julie challenge at 91 Herzl Road in Tel Aviv, owned by Yuvalim Metropolis Boy, all offers carried out this yr replicate a mean worth of greater than NIS 68,000 shekels per sq. meter. The very best is a NIS 4.27 million deal for a brand new 52-square-meter house with two rooms, on the fifth ground, bought final April. The transaction displays a mean worth of NIS 82,000 shekels per sq. meter.
YBOX’s Gat Rimon challenge is on the northern border of Florentin on Gat Rimon Road. In line with the corporate’s 2024 annual report, 9 residences had been offered within the challenge final yr, at a mean worth of about NIS 77,000 per sq. meter.
That is an distinctive worth as a result of it’s outlined as a luxurious challenge, nevertheless it additionally displays the current “bounce” in costs within the space. In 2023 the common worth for residences offered within the challenge was about NIS 65,000 per sq. meter, a rise of 18.5% in a single yr.
YBOX is presently selling one other challenge in Florentin, the “Gvulot Complicated” between Matalon, Gvulot and Abarbanel Streets. On this challenge, the corporate has not but begun promoting residences, however the common worth per sq. meter, in accordance with which the gross revenue within the challenge is calculated, is NIS 58,000 per sq. meter as of 2024.
Within the Hagag Group’s Salma MOMA challenge, which has 4 buildings with 105 residences, the worth per sq. meter in contracts signed in 2024 was NIS 46,700 on common, whereas the worth per sq. meter in contracts signed in early 2025 was already NIS 56,800 on common – a rise of about 21.5%.
TAMA 38 has ended, the brand new plan is being ready: Provide is falling
The top of the TAMA 38 renewal challenge final summer season left a vacuum in Tel Aviv-Yafo in relation to renewal of a particular person buildings. The Tel Aviv Municipality continues to be working by itself constructing renewal plan, TA/5555, the approval technique of which is anticipated to take not less than a number of extra months. A brand new plan for District 8, the place Florentin is situated, and which may itself clear the mist surrounding the renewal potential of the whole space, shouldn’t be in sight.
Nevertheless, there was progress just lately. This month, an in depth plan to replace Plan 44 was permitted for submission, for the business space in north Florentin, and on the similar time, a coverage doc for north Florentin was permitted.
Regardless of this, some see a sure stagnation that’s resulting in solely a small variety of new residences being constructed and a restricted provide of residences.
In line with Gabbay, this is without doubt one of the primary causes for the rise in costs within the neighborhood: “The availability that’s being created now in initiatives which can be being constructed is the availability that the neighborhood may even obtain a decade from now, In my view. That is, for my part, the consequence – the massive improve in costs on this neighborhood in recent times.”
Tel Aviv-Yafo Municipality’s response: “Opposite to what’s claimed, the Florentin neighborhood has been present process a renewal course of in recent times, and there’s a steadiness between the initiatives on the bottom and the will to protect the native cloth and qualities of the neighborhood. Simply final week, the native committee permitted a plan for north Florentin, which is meant to protect the neighborhood’s character as a mixed-use city house, permitting for numerous workplace and business areas and preserving the neighborhood’s distinctive character. Prior to now yr alone, 28 permits had been permitted for implementation.”
Revealed by Globes, Israel enterprise information – en.globes.co.il – on June 3, 2025.
© Copyright of Globes Writer Itonut (1983) Ltd., 2025.
